FSA crackdown on PPI mis-selling
People who have been mis-sold payment protection insurance (PPI) have received the backing of the Financial Services Authority (FSA) and the Financial Ombudsman Service (FOS).
The FSA is introducing measures that will force companies to re-open 185,000 previously rejected complaints and ensure that all are properly and fairly handled.
It means that firms representing 40% of single-premium unsecured personal loan PPIs will review all sales and compensate customers who were mis-sold the policies.
Says FSA spokesman Jon Pain: "Consumers should not be pressured or deceived into buying PPI, and they are entitled to have a policy properly explained to them.
"It is unacceptable that despite previous warnings about poor sales practices, backed by 22 enforcement cases and significant fines, the PPI sector still needs the FSA to intervene on this."
He said that the outcome of a complaint should not depend on whether or not it is past on to the FOS.
"This is the last chance for the industry to show that it can act fairly, consistently and in the best interest of consumers on PPI," he says.